Media24 merger with Novus approved
Merger of Media24 and Novus approved subject to divestiture
The Tribunal has approved the merger of print publication business Media24 (Pty) Ltd (Media24) and listed commercial printing operation Novus.
Novus controls a number of firms including Paarl Coldset and Paarl Media Holdings. Novus provides a range of printing services, in particular publication gravure, heat-set web offset, cold-set web offset, digital and label printing.
The merger was approved on condition that Media24 divest itself of its majority stake in Novus.
The effect of the divestiture is that Media24s shareholding in Novus would be transferred to Naspers’ various shareholders in the proportion of their Naspers shares.
In terms of the agreement Media24 will implement the Divestment within 40 business days through the distribution by Media24 of the Unbundled Shares to Naspers, by way of a distribution in the manner undertaken in the conditions. In terms of the agreement Media24 will retain a maximum of 19% of the Novus Shares.
The decision follows the successful appeal by Caxton and CTP Publishers and Printers Limited against the Novus listing in 2015. Caxton argued that the listing effectively gave Media24 sole control over Novus and therefore should have received approval from the competition authorities as a merger.
The Competition Tribunal initially dismissed the application but an appeal was upheld by the Competition Appeal Court. Under the ruling, Media24 had to notify the competition authorities of a change of control. This was filed with the Competition Commission in February 2016.
Communications: Competition Tribunal
Tel (012)394 1383
Cell: +27 (0) 73 007 5603
On Behalf Of:
Registrar: Competition Tribunal
Tel: (012) 394 3355
Cell: +27 (0) 82 556 3221